City officials have proposed raising the exemption to 20% at a recent City Council meeting, receiving support from council members and Mayor Ron Nirenberg.
San Antonio homeowners may see a welcome reduction in their property tax bills as the city considers increasing its homestead exemption to the maximum limit allowed by state law
This move aims to alleviate the financial burden faced by homeowners who were shocked by steep increases in their home valuations last year. A homestead exemption is a deduction applied to the taxable value of a primary residence, resulting in a lower property tax bill. With the current 10% exemption, a home valued at $300,000 saves around $160 annually. However, if the 20% exemption is implemented, homeowners could potentially save approximately $324 per year, according to city estimates.
Despite introducing a 10% homestead exemption last year, San Antonio collected more revenue due to soaring property valuations. The city also raised exemptions for senior citizens aged 65 and above, as well as people with disabilities.
This year, officials anticipate a different outcome, expecting homeowners’ tax bills to decrease
Troy Elliott, the deputy chief financial officer, stated that the recommended changes would result in reduced tax bills for homeowners. San Antonio experienced a 12.2% increase in taxable value over the past year, with multi-family residential properties seeing a significant 16.8% rise. The Bexar Appraisal District received approximately 169,000 protests against property values.
It’s important to note that the homestead exemption only applies to the city portion of homeowners’ tax bills in San Antonio. The City Council is scheduled to vote on the proposed homestead exemption next week, while the budget vote will take place in September, with the changes taking effect on October 1.
City staff anticipates recommending a slightly lower tax rate in August, further providing potential relief to homeowners in San Antonio.